The 30 Year T-Bond futures have performed nicely over the last 24 hours and look to attack their 3/19 highs.  The strength in the 30 Year futures contradicts those optimistic on U.S. equities. However, we can’t disregard the historical movements made on 3/18 and 3/19 after the Federal Reserve announced its plan to participate in quantitative easing.  We expected reflections from such a large movement backed by high volume, and this prediction may be coming true.  The 30 Year futures are making a statement by distancing themselves from our near-term downtrend line.  Therefore, we wouldn’t be surprised to see a breakout to the upside approaching. 

However, such a movement would likely require an accompanying decline in the S&P futures.  While investors were previously worried supply of U.S. Treasuries would outpace demand as the U.S. pays for a historical stimulus plan and international economies deteriorate, the use of quantitative easing will likely keep demand in check while fueling the 30 Year’s momentum to the upside.  Our next two resistances should prove critical before the 30 Year T-Bond futures can experience a sizable rally. 

Fundamentally, we find resistances of 130.047, 130.563, 130.969, and 131.547.  To the downside, we see supports of 129.406, 128.984, 128.516, and 128.063.  The 30 Year T-Bond futures are presently trading at 129 23.5.

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